Elmers Breakfast Lunch Dinner Restaurant
Elmer's Breakfast ⋅ Lunch ⋅ Dinner offers franchised restaurants serving breakfast and lunch items. Known for casual dining with area development opportunities, it operates in the quick-service restaurant sector.
Elmers Breakfast Lunch Dinner Restaurant franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of an Elmer's Breakfast ⋅ Lunch ⋅ Dinner ® Restaurant is estimated to be $1,520,750 to $4,672,125. For an Egg N' Joe ® Restaurant or an Elmer's Kitchen Breakfast ⋅ Brunch ⋅ Mimosas ®, the total initial investment necessary is estimated to be $1,146,750 to $3,881,500. [p.1]
What is the initial franchise fee?
The initial franchise fee is $40,000 and it is payable when you sign the Franchise Agreement [p.19, p.11, p.113]. This fee is nonrefundable [p.113]. If purchasing an existing Restaurant, no initial franchise fee is required provided that you or the seller pays the transfer fee [p.113].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 4% of Gross Sales [p.113]. For advertising fees, you must spend at least $2,000 for a grand opening marketing program, and after completing this obligation, you may be required to spend up to 1% of your Gross Sales each calendar quarter on advertising and promoting your Restaurant [p.30-31].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you can sell or transfer your franchise, but it comes with conditions. Specifically, if you or the transferee wish to transfer the franchise, a transfer fee equal to 50% of the current initial franchise fee must be paid [p.135]. However, there is an exception where no transfer fee is due upon the death of a spouse when the surviving spouse inherits the franchise interest [p.135].
On what grounds can the franchisor terminate the agreement?
This isn't specified in the excerpts.
What financial requirements — net worth and liquid capital — do I need to qualify?
The FDD does not specify minimum levels of working capital reserves or net worth required for qualification [p.9, p.111, p.74]. The franchisor evaluates a franchisee's or developer's net worth, overall business experience, and length of experience in the franchise system to determine sufficiency [p.9]. This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You may face competition from other franchisees, outlets owned by the company, and other channels of distribution or competitive brands that the company controls [p.36, p.35, p.108].
What training and ongoing support does the franchisor provide?
The franchisor provides a trainer or training team to assist with the grand opening of your Restaurant, typically at no additional cost for the first or second Restaurant opened by you or your affiliates. This assistance includes up to one week before and after the opening. For subsequent Restaurants or if additional support is needed, you are responsible for all costs including travel, lodging, meals, and a per diem. The specific trainers will be determined by the franchisor [p.34, p.107, p.27].
How many franchised outlets are there, and how many have closed or been terminated?
Based on the provided excerpts, as of December 29, 2024, there were 7 franchised Elmer's Restaurants out of a total of 20 Elmer's Restaurants that were open for at least one full year. However, the number of franchised outlets that have closed or been terminated during that period is not specified in the excerpts. [p.52]
Does the franchisor share any financial performance or earnings information?
The franchisor can share actual or potential financial performance of its outlets if there is a reasonable basis for this information [p.51]. However, the franchisor does not make any representations about future financial performance and does not authorize employees to do so either orally or in writing [p.54]. If a prospective franchisee requests it, written substantiation of the data used can be provided upon reasonable request [p.54].
What am I restricted to selling, and where must I buy supplies?
You are generally prohibited from operating a similar business during the term of the franchise. Regarding supplies, you must buy coffee and tea from the franchisor's designated vendor, who also provides brewing equipment and maintenance services at no additional cost. Additionally, soft-drink supplies must be purchased from the designated vendor, which offers a dispenser and up to three maintenance calls per year at no extra charge [p.23]. This isn't specified in the excerpts for other products or services you are required to purchase.